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Buying or Selling Duplex in Southern California

A duplex is a dwelling with separate entrances for two households. A duplex may be used to describe two-story homes with completely separate apartments on each floor or side-by-side apartments on a single lot sharing a common wall. Amongst multi-unit residential investment properties, a duplex is a building comprising two attached units on two different properties and is typically thought of as semi-detached or twin homes, but may also be referred to as a duplex. The line between an apartment building and a duplex is somewhat blurred, with apartment buildings tending to be bigger, while duplexes are usually the size of a normal house.

Southern California's great climate can enable your duplex or multifamily residential income property to serve as a vacation rental for many of its destination cities. Coastal cities are especially popular and you may command higher rents and consequently may pay a higher purchase price. With many cities allowing vacation rental conversion and the increasing popularity of web sites like AirBnB; allowing anyone to turn any space into a hotel, you can create multiple short term rentals with higher asking rates. Plus fewer and fewer duplexes and apartment buildings are being built in California, creating higher demand for a limited supply.

Overall, knowing that the mortgage may be less than the rental income from the other unit, it can be a win-win situation, allowing you to own a home and be an investor at the same time. When investing in duplexes, triplexes, fourplexes and commercial apartment buildings, you will have greater control over who your tenants are and the maintenance of the building if you reside there. An improving economy and decreasing unemployment rates are creating rising rental rates.

Owning a duplex has a number of unique advantages to consider.

1. You Get Help with Your Mortgage

From a homeowner’s perspective, buying a duplex can be especially appealing because you can live in one area of the building and collect rent from the tenants living in the other area. This makes it easier to pay off your mortgage.
Hypothetically imagine you purchase a duplex and your mortgage is $2,500 per month. You rent out half of the duplex for $1800 per month, which means you only need to come up with $700 every month. Or, you could pay down your mortgage faster by making double payments each month. This is one of the most appealing aspects to buying a duplex.

2. Duplexes Are Affordable

Many duplexes are located in affordable neighborhoods. If you can’t afford the home you want in an expensive neighborhood, a duplex in a less expensive area may put you on the fast track to buying a home. In addition, you receive rental income, which makes the home even more affordable.

3. You Can Rent to a Family Member

If you have elderly family members or family members with health challenges who need extra care or limited supervision, you can allow them to rent the extra apartment in lieu of moving into a nursing home. This sort of living situation works well for many families. You can have your beloved family members close, allowing them to maintain their independence, and everyone get the privacy they need. Duplexes are also great for in-laws or service quarters for live-in workers like nannies and housekeepers.

A property manager can also help you control owner/ landlord expenses and if necessary guide you through the tricky Section 8 and the sometimes unavoidable eviction process. We have many duplexes, triplexes, fourplexes, and commercial apartment buildings without rent control, with on-site laundry, parking and separately metered utilities. Invest with us and request more information about the historical CAP Rates for your next duplex in cities of your choice and ask about the GRM (Gross Rent Multiplier) for specific listings.